VinFast has officially announced its entry to the Indian automotive landscape with a manufacturing facility proposal in the state of Tamil Nadu. The Vietnamese EV-maker has committed an investment of USD 500 million, which it plans to spend over the course of next 5 years.
While we have been hearing news about Tesla’s entry in India, Vietnamese EV maker VinFast has been on its toes to tie up with the Tamil Nadu government in setting up its manufacturing facility. The upcoming facility is said to spread across 400 acres and produce around 1,50,000 vehicles annually. The facility will be set up within the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) industrial estate.
VinFast also emphasised on localisation and local vendors, aligning with the vision of central governance. In addition, the manufacturing facility is also said to provide jobs to over 3,500 local residents, thus boosting the state’s economy.
The company has visioned India as one of the key markets moving forward and also the manufacturing hub. India will join Vietnam and the US in the global manufacturing hubs for VinFast, which should boost the local economy as well as exports.
They also revealed their plan to set up a robust dealership network, which solidifies the brand’s approach of dealing with its customers. Unlike other EV makers like Tesla that directly operate sales operations, VinFast is likely to follow the conventional dealership sales approach, which typically offers better customer experience over direct brand sales.
Explaining further about its entry into the Indian market, Pham Sanh Chau, CEO of VinFast India, commented, “VinFast’s groundbreaking ceremony for its plant in Thoothukudi, Tamil Nadu, is a significant stride towards sustainable and green mobility in India. By establishing an integrated electric vehicle facility, the company’s commitment to job creation, green transportation, and strategic partnerships solidifies VinFast’s position as a major player in the electric vehicle industry.”
He further added, “This milestone strengthens the bonds between the robust economies of Vietnam and India, and underscores VinFast’s dedication to a zero-emission transportation future, setting the stage for economic growth, innovation, and environmental sustainability in the region.”